Question

Was Henry Ford in favor of government intervention during great depression or oppose of government intervention during great depresstion? Please explain (type) in 2-3 paragraphs. Thank you.

Answer 1

Henry Ford had in beginning judged importance of aggregate demand. From beginning, he supported higher wages and facilities to workers to keep growth of economy high.

Hence, during great depression, he requested to business fraternity to increase wage rate and reduce price level to save economy from depression. He was in favor of high wage so that aggregate demand could be increased significantly. Further, reduced prices also were expected to bring rise in demand level.

Thus, he was not in favor of active government participation and instead, he demanded active participation from business class by changing business ethos.